There are a lot of pros and cons to remaining a niche company or deciding to branch out and reach a broader audience. Some businesses find that their niche works perfectly for them and helps them stay true to their brand. They do one thing well and can focus on that rather than trying something new that could potentially fail or alienate their audience.
However, some companies might be more interested in converting new clients and feel too limited by having only a niche audience. A niche business can have steady and reliable income but a business that wants to expand will find that being too focused can hold them back. One of the dangers of being niche can also be that people lose interest in your products over time and by not diversifying you are leaving yourself more vulnerable to the shifting market.
Diversifying can take time but it can open up new possibilities for businesses that want grow and stay relevant. However, if you become too unfocused and stray too far from your core product you might begin to lose your existing audience. The best solution is to remain focused but innovative enough that you aren’t limited by your niche.
Every business should try to improve on what they do best instead of staying static and continuing to create the same product. You should make plans to diversify in order to meet new technology, marketing shifts and other changes so that you aren’t left behind by being too limited. Businesses don’t necessarily need to be a jack of all trades to diversify but simply need to continue keeping their products fresh and interesting.
There are benefits to both staying niche and diversifying but finding a balance between the two can often be the best answer to maintain an interested audience.